TCS for freelancers?

Hi,

I am a freelancer who is working through freelance sites. My clients are from other countries and receives payment in US dollars.

freelance sites are asking GST number for TCS collection for GST that is 1% of the income.

My income is below 10 lakhs per annum. Should I give GST number for TCS? Do TCS is cut when income is below 10 lakhs.

I am also filing GST returns, paying 18% of the earned income in IGST ( which may be refundable).

What should I do? Please help me.

thanks

 

 

 

Replies (5)
Quick Summary
This discussion addresses whether freelancers earning below 10 lakhs per annum are liable for Tax Collected at Source (TCS) when using international freelance platforms. The consensus is that if you are GST registered, TCS provisions apply regardless of your income threshold. It also touches upon GST returns for export services, the need for FIRC (Foreign Inward Remittance Certificate) for refunds, and how to correctly report international transactions in GSTR-1.

Whether TCS need to be deducted: Yes , In term 52(1) , if you are supplying any such services on behalf of E-commerce operator & the consideration for the same is being received by E-commerce Operator, then such supplies is cover under bracket of TCS .

Yes even though your turnover is below 10 lac but as you are registered in GST , all the provision of Act is applicable to you. (Refer Section 22)

So yes you are liable charge GST on earned income & you cannot claim refund for the same .
You can claim refund only for the TCS deducted.

Hello Sir,

What I will add in GSTR 1 as a proof of international transaction. Will I need FIRC from the freelance company to file the return?

thanks

 

Do anyone know what I should do? Most of the people are clueless about that.

Freelance company has know answer. Bank is clueless about FIRC

YES DEFINITELY YOU NEED FIRC IF ITS COVER UNDER EXPORT SERVICES.

FOR EXPORT SERVICES YOU NEED TO PROVIDE INVOICE DETAILS IN TABLE 6A OF GSTR 1, FIRC & OTHER DETAIL IS REQUIRED ONLY WHEN YOU WANT TO CLAIM REFUND .

NOTE : YOU MUST HAVE FIRC WHEN YOU EXPORT

GSTR 1 has invoice no. only. there is no field for FIRC. Do the inward no. on FIRC is invoice number?

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